The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Manipal Co-operative Bank Ltd., Manipal, Karnataka for violating RBI directives by granting loans for real estate purpose exceeding the single party exposure limit of 15 per cent of its capital funds as on September 30, 2009 and real estate exposure limit of 15 per cent of its deposits as on March 31, 2009.
Information to this effect was made by Ajit Prasad, Assistant General Manager through Press Release: 2010-2011/1573 that the Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply.
After considering the facts of the case, bank’s reply and personal submissions in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.
